CapitaLand China Trust divests CapitaMall Shuangjing
In line with CLCT’s proactive portfolio management strategy to deliver sustainable returns to Unitholders
Singapore, 6 December 2023 – CapitaLand China Trust Management Limited (“CLCTML”), the manager of CapitaLand China Trust (“CLCT”), is pleased to announce that CLCT, through its wholly owned subsidiary, has entered into an agreement to divest its entire equity interest in CapitaRetail Beijing Shuangjing Real Estate Co., Ltd., which holds CapitaMall Shuangjing (the “Property”) to an unrelated third party based on an agreed price of the Property of RMB842.0 million (approximately S$157.8 million[1]) (the “Agreed Interest Price”).
The Agreed Interest Price represents an exit yield of 2.8%[2]. Targeted for completion in the first quarter of 2024, the divestment will crystallise higher cash value from the Property and enhance returns to Unitholders and is expected to generate net proceeds of approximately RMB690.7 million (approximately S$129.5 million).
Mr Tan Tze Wooi, CEO of CLCTML said: “As part of our proactive portfolio management strategy, we are constantly on the lookout for opportunities to monetise non-core assets and capitalise on investment prospects that will strengthen the quality of our portfolio. CapitaMall Shuangjing is a predominantly master-leased mall that would require significant capital outlay and planning downtime to repurpose the building and remain competitive. As such, this divestment presents a good opportunity to unlock value and enhance total returns for Unitholders. Proceeds from the divestment will strengthen CLCT’s balance sheet and provide greater financial flexibility to pursue capital recycling and portfolio reconstitution initiatives.”
Upon completion of the divestment, CLCT will own a portfolio of 10 shopping malls, five business park properties and four logistics park properties located in 12 cities in mainland China.
About the Property
CapitaMall Shuangjing is a shopping mall with four retail levels located near the East Third Ring Road at Jiulong Commercial Building, No. 31 Guanggu Road, Chaoyang District, Beijing, China and was part of CLCT’s initial public offering portfolio in 2006. It has a gross floor area of 49,462.65 sqm.